Rise another blow

The announcement of the Reserve Bank’s 10th consecutive interest rate rise is yet another blow during a period of rapidly-rising costs of living.

The central bank raised its cash rate by 25 basis points to 3.6 percent last week – reaching the highest level since mid-2012.

In turn, the major banks have announced they will pass on the rise to mortgage-holders.

It wasn’t unexpected, but it means, for example, that the cost of additional repayments on a mortgage worth $500,000 would have increased by about $1000 a month since May.

The monthly consumer price index, CPI, indicator suggests that inflation has peaked in Australia, and reserve bank governor Philip Lowe reiterated inflation was forecast to decline and reach ‘around three percent in mid-2025’.

“The board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary. In assessing when and how much further interest rates need to increase, the board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market,” he said.

While both farmland and residential property prices have never been higher, when it comes to residential properties, for example, people in the Wimmera, Mallee and Grampians pay less, comparably, than other areas in the state.

Our wage, on average, and our cost of living is also lower.

But any wage rises are certainly not ‘keeping up’ with that of a mortgage, and potentially also rental costs – along with general household costs such as utilities and groceries.

What risk, and what stress, does this place on people’s financial capacity to care well for themselves and others, to spend at local businesses and services outside of the must-have requirements of life and to participate in sport and other extracurricular activities.

It puts additional stress on households and on the services that support them – many of which, themselves, are also experiencing significant strain. But there is always a way and they won’t let anyone go without.

Help is at hand and the services located across the region who are only a phone call or email away are well-experienced with navigating the challenges of life and armed with empathy and a kind heart to help for any length of time.

Just say the word.